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Goodrich Petroleum attracts the bulls

Goodrich Petroleum has been falling steadily for more than a week, but traders are apparently looking for a positive earnings report early next month.

More than 4,500 May 15 calls were purchased on Friday for $0.35, optionMONSTER's Heat Seeker system shows. The volume was more than 4 times higher than the strike's open interest of 1,030 contracts before the session began, clearly indicating that this is fresh buying.

These long calls , which lock in the price where traders can buy the stock no matter how far it might climb, are looking for GDP to rally above $15 in the next month. The options could be sold earlier at a profit if premiums rise with any rally, but the contracts will expire worthless if shares remain below that strike price through mid-May. (See our Education section)

GDP declined 1.59 percent to $12.96 on Friday. The independent oil and natural-gas company gapped up from below $11 in early February on strong quarterly numbers but hit resistance at the $16 level and has been declining since April 11. Its next earnings results are scheduled for May 7 , eight sessions before the calls expire.

Total option volume in the name exceeded 7,600 contracts on Friday, nearly 10 times its daily average for the last month. Only 111 puts traded in the session, an indication of the day's bullish sentiment.